Below is the list of the 5 best stocks to buy according to George Soros. For a comprehensive list and detailed discussion please see 10 Best Stocks to Buy According to George Soros.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, artificial intelligence is one of the fastest-growing industries right now, so we are checking out stock pitches like this emerging AI stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now, let’s take a look at George Soros’ top 5 stock picks:
5. FIGS, Inc. (NYSE:FIGS)
Number of hedge fund holders: 12
Soros Fund Management initiated a huge position in FIGS, Inc. (NYSE:FIGS) during the second quarter. The firm bought $159 million worth of stake in direct-to-consumer healthcare apparel and lifestyle company. FIGS stock price soared sharply since its debut on NYSE in May. The share price rally is backed by strong financial numbers and growth indicators.
The company generated net revenue of $101 million in the second quarter, up 57.6% from the past year period. In addition, its active customers grew by 79.2% to 1.6 million in the second quarter.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of hedge fund holders: 190
Alphabet Inc. (NASDAQ:GOOGL) is one of the long-running stock holdings of Soros Fund Management. At the end of the second quarter, the firm held $171 million worth of position in Google parent Alphabet. Shares of Alphabet are up more than 63% this year, thanks to robust growth in ad revenue.
In the second quarter investor letter, Baron Opportunity Fund highlighted a few stocks including Alphabet: Here is what Baron Opportunity Fund stated:
“Alphabet Inc. is the parent company of Google, the world’s largest search and online advertising company and a top cloud computing player. Shares of Alphabet were up in the quarter given continued recovery in ad spending, strong cloud revenue growth, and improved cost controls. Alphabet’s total revenue grew 32%, beating the Street’s estimate of 25%, with search revenues up 30%, YouTube revenue up 49%, and total cloud revenue up 46% (with Google Cloud Platform growing much faster). Moreover, Google’s operating margins expanded over 1,000 basis points from 19% to just under 30%. We retain high conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in cloud computing, artificial intelligence (AI), autonomous driving (Waymo), and life sciences.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of hedge fund holders: 271
The world’s largest e-commerce platform Amazon.com, Inc. (NASDAQ:AMZN) is the third-largest stock holding of billionaire George Soros portfolio, according to the second-quarter filings. His firm lifted its stake in Amazon by 37% to 94,604 shares in the second quarter. Shares of Amazon rebounded in the past few months after experiencing volatility early this year.
In the second quarter investor letter, L1 Capital, an investment management firm, mentioned a few stocks including Amazon. Here is what L1 Capital stated:
“Amazon flipped from being the largest detractor from portfolio performance in the March 2021 quarter, to one of the leading contributors in the June 2021 quarter. We took advantage of negative near-term sentiment in the March 2021 quarter to add to our Amazon investment. We continue to view Amazon as one of the best-positioned businesses globally, with its share price still not reflecting fair value.”
2. D.R. Horton, Inc. (NYSE:DHI)
Number of hedge fund holders: 45
The home building company D.R. Horton, Inc. (NYSE:DHI) is the second-largest stock holding of billionaire George Soros’ family office portfolio. The firm held 1.1 million shares of D.R. Horton at the end of the second quarter. Its stock price surged 32% since the beginning of this year. In addition to share price gains, the company offers a dividend yield of 0.88%.
Prominent investors were becoming less confident. The number of bullish hedge fund bets has dropped by 5 lately. D.R. Horton was in 45 hedge funds’ portfolios at the end of June compared to 50 positions in the previous quarter.
1. Liberty Broadband Corporation (NYSE:LBRDK)
With $690 million worth of stake, Liberty Broadband Corporation (NYSE:LBRDK) is the largest stock holding of Soros Fund Management. Liberty stock price soured 18% since the beginning of the year, extending one-year gains to over 37%. The communication services company generated $242 million in the second quarter revenue while its earnings per share came in at $0.30 per share.
Prominent investors were becoming less confident. The number of bullish hedge fund bets has dropped by 7 lately. Liberty Broadband Corporation was in 63 hedge funds’ portfolios at the end of June compared to 70 positions in the previous quarter.
You can also take a peek at the 10 Best Stocks to Buy According to Billionaire Ken Fisher and 10 Best Stocks to Buy for the Next Ten Years.
